Income Tax Department: The main expenditure of the Income Tax Department is in giving salary to the employees, administrative works, IT expenses and some other things…
Income Tax Collection Cost: The tax collection cost of the Income Tax Department is continuously decreasing. In the financial year 2021-22, this cost was equal to about 0.5 percent of the total deposited tax. This is the lowest cost of tax collection in more than two decades.
Now the cost is so low
The Income Tax Department is getting help in reducing the cost due to the increasing use of technology in matters related to tax and economy and the increasing scope of Tax Deducted at Source ie TDS. According to the data of the Income Tax Department, the total tax collection in the financial year 2021-22 stood at Rs 14.12 lakh crore. At the same time, the cost of tax collection was equal to 0.53 per cent.
used to cost so much
According to statistics, the Income Tax Department had to spend a fair share of the total collection till a few years ago in tax collection. During the financial year 2000-01, the Income Tax Department spent 1.36 per cent of the total tax collected to collect tax. During the financial year 2015-16 to 2019-20, it was between 0.61 per cent to 0.66 per cent of the total collection, while it increased slightly to 0.76 per cent in the epidemic-affected financial year 2020-21.
These things are spent
According to government documents, the main expenditure of the Income Tax Department is to pay salaries to the employees, administrative works, IT expenses and few other things. However, if we look at the total amount rather than as a proportion of the total tax collected, then the cost of tax collection has also increased. In the financial year 2015-16, the Income Tax Department spent Rs 4,593 crore on tax collection, which increased to Rs 7,479 crore in the financial year 2021-22.
Increase in tax collection
The total tax collection of the Income Tax Department has also increased rapidly during the period under review. The total direct tax collection was Rs 7.4 lakh crore in the financial year 2015-16, which increased to Rs 14.12 lakh crore in the financial year 2021-22.
Helped for these reasons
Tax experts say that the recent efforts of the Income Tax Department have helped in reducing the burden of tax collection. The Income Tax Department has started adopting a more targeted approach from assessment of tax matters to other processes. This is helping the department. Along with this, the use of technology has also reduced the cost.
